- Oops!Something went wrong.Please try again later.
Simon Pitts has been the CEO of STV Group plc (LON:STVG) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether STV Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing STV Group plc's CEO Compensation With the industry
According to our data, STV Group plc has a market capitalization of UK£129m, and paid its CEO total annual compensation worth UK£1.1m over the year to December 2019. Notably, that's a decrease of 36% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£411k.
On comparing similar companies from the same industry with market caps ranging from UK£75m to UK£300m, we found that the median CEO total compensation was UK£840k. Accordingly, our analysis reveals that STV Group plc pays Simon Pitts north of the industry median. Moreover, Simon Pitts also holds UK£416k worth of STV Group stock directly under their own name.
Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. There isn't a significant difference between STV Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
STV Group plc's Growth
Over the last three years, STV Group plc has shrunk its earnings per share by 22% per year. Its revenue is down 7.7% over the previous year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has STV Group plc Been A Good Investment?
Given the total shareholder loss of 6.0% over three years, many shareholders in STV Group plc are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, STV Group pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. To make matters worse, EPS growth has also been negative during this period. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for STV Group that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.